Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Islander who wrote (14347)	10/6/1998 11:03:00 PM
From: Michael Collings	Read Replies (1) of 27307

Islander: What I am saying is that brokerage firms generally make a market in stocks that they recommend in OTC stocks. That means they are taking in product to trade for their own accounts and for customer accounts. If they have large blocks of stock that they are looking to unload either for themselves or for large customers, it is not unheard of to reiterate buy recommendations or to start buy recommendations. I know that seems unfair but you need to understand that brokerages make their biggest amounts from market making activities and trading for large accounts. In many cases they also have relationships with the companies themselves so you will rarely ever hear them say "sell". The best you might here is downgraded to a hold. That is because companies don't like it when brokerages downgrade their stocks. It could end the relationship between them. So you should always be suspect of buy recommendations especially when stocks have already run up a great deal. It's not a big conspiracy, it is just brokerages doing business. If a large client wants to unload stock the brokerages will do their best to make sure there is a market. If large blocks are trading at the bid, that generally means a big investor is getting out of the stock. Now with Yahoo, it might mean nothing more that big traders daytrading but several days in a row is suspect. Whether or not YHOO collapses after earnings probably more depends on how big the roar is after they announce the better than expected earnings.. Obviously the longs think it is going to sky rocket. And shorts think it is already factored in. Personally I think the market is going to have another leg down at any time and that it will take YHOO with it. But that might be days off or tomorrow. These are strange times and the risks involved are much greater than is often discussed.

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